BAJAJ-AUTO vs HEROMOTOCO
Side-by-side comparison of Bajaj Auto Ltd. and Hero MotoCorp Ltd.. Descriptive only — not investment advice.
Bajaj Auto Ltd.
Auto
Quality Score: 73/100
Hero MotoCorp Ltd.
Auto
Quality Score: 74/100
At a glance
| Metric | BAJAJ-AUTO | HEROMOTOCO |
|---|---|---|
| Quality Score | 73/100 | 74/100 |
| P/E (trailing) | 27.8 | 18.6 |
| Forward P/E | 22.7 | 16.7 |
| ROE | +28.1% | +28.0% |
| Profit margin | +16.5% | +12.1% |
| Debt-to-equity | 56.29 | 3.57 |
| Dividend yield | +1.40% | +3.48% |
| 1Y price return | +38.2% | +42.2% |
| From 52w high | -0.7% | -15.1% |
| Analyst rating1 = Strong Buy, 5 = Strong Sell | 2.41 | 2.29 |
Highlighted value = better on the metric (lower for P/E, D/E, drawdown, analyst rating; higher elsewhere). Descriptive only.
Snapshots
Bajaj Auto (₹10,711.5) is trading at a 52-week high, up 38.2% over the past year and 11.1% over the past three months, sitting 17.1% above its 200-DMA and 12.2% above its 50-DMA. The company posted 5-year earnings growth of 103.1% and carries a trailing PE of 27.81 against a forward PE of 22.71, with ROE of 28.05% ranking first among its disclosed Auto peers. Recent corporate actions include a ₹150/share dividend declaration and a share buyback announcement in early May 2026.
Hero MotoCorp (HEROMOTOCO) reported record FY2026 revenue and profit with EV and export growth, while trading at a trailing PE of 18.6 — the lowest among its 6-peer Auto sector group where peers range from 21.9 to 37.5. At ₹5,322, the stock is up 42% over 12 months but has pulled back 7.3% in the past 3 months and sits marginally below its 200-DMA of ₹5,334.
Pros
- ✓ROE of 28.05% is the highest among the 6 Auto peers with available ROE data (M&M: 18.75%, MARUTI: 14.43%), and has been above 15% in 4 of the tracked years with a consistency score of 83.
- ✓5-year earnings growth of 103.1% and 5-year revenue growth of 48.8% reflect sustained top-line and bottom-line expansion over the measured period.
- ✓At ₹10,711.5, the stock is only 0.68% below its 52-week high; price is above both the 50-DMA (₹9,550.96) and 200-DMA (₹9,146.2), indicating the price trend has been pointing upward across both intermediate and long-term moving averages.
- ✓April 2026 total sales of 5,13,792 units represented a 40% year-on-year increase, and the company announced a ₹150/share dividend plus a share buyback — two capital return actions within the same week.
- ✓Lowest trailing PE (18.6) among the 6-stock Auto peer group, where the next closest is M&M at 21.9 and the group high is Eicher Motors at 37.5 — HEROMOTOCO trades at a 37% discount to the peer median PE of approximately 29.
- ✓ROE of 28.0% ranks 2nd among peers with available data (vs BAJAJ-AUTO at 28.1%, M&M at 18.8%, MARUTI at 14.4%), indicating sustained capital efficiency over the measured period.
- ✓Quality score of 69 ranks 1st among all 6 peers (peer range: 31–60), and a consistency score of 77 with ROE above 15% for 4 recorded years and FCF positive for 4 recorded years underpins the quality ranking.
- ✓Dividend yield of 3.48% adds a cash return component; 5-year revenue growth of 30.2% and earnings growth of 25.7% reflect a multi-year track record of compounding at scale.
Cons
- ✗RSI of 73.83 places the stock in overbought territory; price is 12.2% above the 50-DMA and 17.1% above the 200-DMA, representing a significant extension from both near-term and medium-term trend averages.
- ✗Reported debt-to-equity of 56.29 is anomalously high relative to the sector and warrants scrutiny against standalone financials; if confirmed at the consolidated level, it would represent a material departure from FMCG and auto-sector norms.
- ✗FCF-positive data covers only 3 years in the persistence block, which is insufficient to establish a long-cycle track record of free cash generation.
- ✗Quality score of 55 ranks 2nd of 6 among peers, but the absolute score is mid-range; sector peer data gaps (missing ROE and 1Y price change for multiple peers) reduce confidence in the relative quality ranking.
- ✗Debt-to-equity of 3.57 is elevated for an Auto OEM and the trend is classified as rising; this increases financial leverage risk, particularly if EV capex continues to scale or if a volume downturn compresses operating cash flows.
- ✗The stock has been trading below or at its 200-DMA of ₹5,334 in the recent period; the 3-month return of -7.28% contrasts with the 12-month return of +42.22%, suggesting momentum has shifted over the shorter horizon.
- ✗Profitability margin at 12.1% is the primary earnings driver, and any compression from rising input costs, EV price competition, or unfavourable currency on exports could disproportionately affect net income given the operating leverage inherent in a high-volume OEM model.
- ✗Analyst coverage of 33 analysts with a mean rating of 2.29 on a 1–5 scale (lower = more constructive) reflects a spread of views; a rating of 2.29 is not uniformly at the constructive end of the scale, indicating meaningful divergence among analysts on the stock's near-term prospects.
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